Why Business Owners occasionally choose HIGH RATE cash advances instead of those LOW RATE business loans ?

April 23, 2019 By: gregory bonilla0 comments

Everyone knows that those merchant cash advances are much more expensive than business loans … So, it baffles me when my applicants try to rationalize their preferences to pursue cash advances for now, and like, a couple months later apply for business loans …

Recently, one of my clients had explained to me his overall take on business fundings, which is probably a shared viewpoint by most business owners, whether they openly admit it or not …

He said that he get at least 5 calls and 10 emails a day, unsolicited presentations to apply for business funding … For the first 3 years’ time in business, he had rudely banged on those incoming phone calls and unsubscribed to those emails … But those unsolicited calls and emails had continued from allegedly other soliciting companies.

He’d told me that he wanted to keep his business totally debt-free … He had reminisced with for a bit, he’d previously took out credit cards in his college days and maxed them out … When he’d finished college and started working, how he had such a hard time paying them back and also school loans , again, while paying regular household expenses and dating fees.. Yes Readers, it actually cost alot to date around. Back then you had to be a classic gentleman and actually pay for dinner for both …

Fast forward from year 1995 to last year, 2017. One day on a HOT August afternoon, his cooler had cracked, not his air conditioning, but his cooler system had suddenly broke. He owns a Carvel ice cream shop in New Jersey or Connecticut … So, his inventory, all of those different containers of ice cream, started to melt … And nobody will buy watered down, melting ice cream … So, this Carvel Business Owner had to think fast and move fast. He had to quickly resolve this sudden crisis before he lose his ice cream inventory and that steady incoming traffic of customers …

He said, that he has desperate, he had made some phone calls, looked up business loans on the google search, he had even tried call the cooler’s warranty contact, But to no avail… Then one of many unsolicited calls came in, this time he had answered politely and agreed to fill out and submit their funding application… His original intention is apply for a SBA loan, since his credit score was above 720 with strong bank statements … But , after the funding company had informed him that the turnaround time may take upto 3- 4 weeks, he was advised to apply for a merchant cash advance for now, then later on, after he pay down his open balance, then apply for SBA loan or another business loan …

Well, fortunately for that merchant, he had completely paid-off his open balance on his own revenues from ice cream sales… The hot climate had persisted, like fate or something … So, the point I’m trying to make is that even the savviest and the smartest of business owners will choose a merchant cash advance over a regular business loan for that little thing called time …

Emergencies comes up, and you have to move fast. What can you do ? Time itself, can absolutely dictate your next decision in business and in life … As I get older, I realize more and more that time is more valuable than money … Look, if you can get funded upto 80% of your monthly gross in a next day wire as oppose to wait 4 weeks later and many submitted documents later, what would you do ? Especially during a crisis scenario … Well , in the case of this Carvel’s Business Owner, was able to savage his business and more importantly, continue to handout those tasty scoops of ice cream , all thanks to those highly expensive Merchant Cash Advances …

BELOW is a quick ( 1 minute ) Video Explanation on how my Merchant Cash Advances Work … If you are ever interested in speaking with a Business Funding Specialist  about your available options, whether, cash advances, business loans, factoring, or line of credit …. We do handle several different funding programs , just because you folks have different needs, and we aim to please YOU …

Just CLICK HERE to schedule whenever best time works for you . https://calendly.com/greg-69/15min/